We have new clients currently late on a bi-weekly mortgage.  We cannot get them a prime mortgage.  It’s truly disheartening but if your mortgage is not up to date, you are technically in default and no other mortgage company will consider you as a prime deal or best rates. 

Since the beginning of this year, mortgage payment history has become part of the credit report.  So now all lenders, credit card companies and financial institutions can see how you have paid your mortgage for the past 7 years.  Many homeowners are under the wrong assumption that is no big deal to miss a payment especially if they are paying twice or four times a month.    We are opposed to most homeowners paying their mortgages more than once a month.  On bi-weekly payments, you have twice the chance of a missed payment showing up on your bureau and with weekly payments, that’s four times.    Remember the increase in frequency on mortgages is in the bank’s favour and not yours.  They can use your money to lend out and charge you interest while they do.  YOU DO NOT PAY YOUR MORTGAGE DOWN ANY FASTER unless you are on accellerated payments.  But the risk far outweighs any advantages.  The biggest risk for you as the homeowner is a bank exercise power of sale proceedings on three missed payments and that can be only three on weekly payments. 

It is much more prudent to increase your monthly payment by your prepayment options or just put a lump sum when you can.  Most of our lenders allow 15 to 25% in prepayments.   That way, you are in control and not your bank!

If you have had some late payments in the past, do not worry.  Switch your payments back to monthly and start paying on time.  And don’t forget to call us anytime.  We are here to help.